Why Banks Distrust Students?

Last year in November, I visited my bank to deposit a check from an American client paying me for some freelance articles I wrote for her. The bank officer appeared uneasy at the sight of the check and started asking me questions in a tone that I felt was not very welcoming: “why does your account lack a history of foreign transactions?” “Isn’t your account balance quite low?” “What’s the money being paid for?” etc.

I answered his questions with patience, hoping he’ll complete the procedure for depositing the check and stop wasting my time. Instead, he surprised, in fact irritated me, by telling me that I needed to deposit 200 rupees in my account before he’d deposit my check?

State Bank Pakistan
alt=”State Bank Pakistan

“Why is this required?” I asked, not quite aware of any such rules. He replied that this was indemnity against the possibility that the check might bounce and the mailing charges would be the bank’s loss. I asked why the check would bounce. And then the cat came out of the bag.

“Are you a student of this university?” he asked looking at me as if trying to judge me.

“No, I am a professional writer,” I replied. This worked wonders! Suddenly his expression and tone became relaxed and friendly.

“Okay then, you don’t need to deposit the money,” said he. “I thought you were a student. I don’t trust students.”

While this sparked my curiosity about the point of distrusting students, I just kept quite to save time and rushed out of the bank to my residence. But soon as I found time to ask one of my friends I got my answers. I visited my friend Faisal, a bank officer, and asked him to tell about this trust and student affair.

He explained to me that banks in Pakistan, all of them, are careful while dealing with students, especially when it is a matter of foreign transactions through the bank. The main reason for this is the ever-growing trend of students asking for bank statements of loans drawn for education in foreign countries. To get a student visa to a foreign country, students are required to provide proof of their financial strength enabling them to pay for their expenses in the host country. Many of the students don’t have their own money for this purpose and hence they seek bank loan statements, sometimes insisting on fake statements that can endanger the credibility of the bank.

For several years, there is another trend growing in the country, i.e. bank officers having their own money offer to transfer the money to an account in the name of the student for a month or two, that is until the student’s visa is issued, and then getting it transferred it back into their own account while charging the student a certain amount. This can be about a hundred thousand rupees or more for depositing around 2 to 3 million rupees in the student’s account. Of course, a trusted mutual friend is needed to ensure that the student returns the amount without any fraud to the banker after his/her visa is issued.

Faisal told me that these are almost always male students who visit banks for such transactions. Due to this quest for the west, students now make a “suspicious” category for banks such that banks are cautious in dealing with students in both financial and non-financial transactions.

Hot this week

Did David Wineland and Serge Haroche Steal Idea For The Nobel Physics Prize?

Dr. Omerbashich says the Royal Swedish Academy is a Crime Scene and he has the proof that Nobel laureates stole his discovery.

New Approaches to Disaster Relief Challenges

Disaster relief has always been a challenge. NASA, Google,...

3 Legitimate Money Making Methods to Supplement Your Income

In a perfect world, when your landlord raises your...

2016 Predictions by World Renowned Medium and Psychic Lindy Baker

World renowned medium and psychic Lindy Baker is interviewed by The Hollywood Sentinel, discussing psychic power, the spirit world, life after death, areas of concern in 2016, and much more.

Digital Coupon Customers Spending More Than Double At Stores

A new study shows that customers who use digital coupons go shopping more for groceries and other household goods more often and spend more on their shopping trips.

Will Roberts Takes Center Stage as Carmel Film Festival Emcee

Will Roberts takes center stage as Carmel Film Festival emcee while Hollywood Adjacent and Knock at Eight add to his screen work.

Military Begins New Testosterone-Deficiency Screening Policy for Male Service Members

The Defense Health Agency has implemented a new testosterone-deficiency screening policy for male service members, creating one of the most notable changes to military men's health screening in 2026. Under the guidance released in September

Jay Sunde on Why Operators Should Own the Building

Most small business buyers focus on the company and treat the real estate as someone else's problem. Jay Sunde took the opposite approach.

Spray Foam vs. Fiberglass vs. Cellulose: Lane Pace Explains What’s Best for Your Home

Homeowners searching for the best type of insulation often expect a single winner. Spray foam, fiberglass and cellulose all show up.

The Shameful Documentary NAZA

NAZA, a new documentary by Israeli journalist Yuval Abraham and filmmaker Rachel Szor, presents serious allegations about Israeli military operations in Gaza.

Top Jewelers in Miami: 8 Shops Worth Visiting in 2026

From iced-out moissanite chains to handmade gold Cuban links and rare signed jewels, eight Miami jewelers worth a visit this year.

How Buy Now, Pay Later Debt Changes Your Bankruptcy Decisions

Does buy now, pay later debt count when you're deciding whether to file for bankruptcy? More and more, yes, even when the balance never touched your credit report. Split-pay loans from apps like Klarna, Afterpay, Affirm, and Zip have become

The Debt Collector’s AI Voice Agent: How Synthetic-Voice Dunning Calls Are Colliding With Decades-Old Consumer Protection Rules

Most consumers assume the friendly voice on a collection call belongs to a person following a script. It is often a script following a person. A synthetic voice, cloned or generated by an AI agent, working a call list on behalf of a collect

Related Articles

Popular Categories